Gaming Comes to Town, and Racing Takes It On the Chin Presentation - PowerPoint PPT Presentation

82 Location II: Reilly’s Law

Reilly’s Law: ms ~ S/d 2 Where ms : market share S : “size” of each trade center d : distance 83

Newton’s Law: F = m/d 2 Where F : gravitational force m : mass (of each body) d : distance 84

Reilly’s Law: ms ~ S/d 2 Where ms : market share S : casino size (capacity) d : distance 85

Newton’s Law: F = m/d 2 Where F : gravitational force m : mass (of each body) d : distance 86

Reilly’s Law: ms ~ S/d 2 Where ms : market share S : casino size (capacity) d : distance / travel time 87

88 Size Matters

Reilly’s Law: ms ~ S /d 2 Where ms : market share S : “size” of each trade center d : distance 89

More Slots, More Spending � $1,600 $1,400 $1,200 Slot Spending / Adult / Year $1,000 $800 y = 43.304x + 207.05 R 2 = 0.8607 $600 $400 $200 $0 0 5 10 15 20 25 30 "Density" of Slots in Iowa Markets ( = Number of Slots / 000 Adults) 90

91 Calculations

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94 Other Things Matter, Too

“Other Things” that REALLY Matter � Micro-Access � Spaciousness � Slot Mix � Fit & Finish � Management � Marketing / Player Rewards 95

Useful Assets � Hotel � Structured Parking � Variety of Dining Choices � Retail � Entertainment � Players’ Club 96

97 “Power Ratings” Comparisons /

Exhibit 11: Slot "Power Ratings" for Major Regional Gaming Facilities (Spending per Distance-Adjusted Adult Compared to "Midwest Standard" of $700) Northeastern US Kansas and Other Markets Markets Its Neighbors Midwest & West Deadwood, SD 129.9 S Dakota Indian avg. (8) 124.7 e Colorado (2) 120.1 Upstate Michigan avg. 120.0 e Kansas Natives avg. 117.3 e Mississippi / Louisiana 115.5 Terribles Lakeside. IA 113.6 Horseshoe / Bluffs Run, IA 113.1 Diamond Jo Worth, IA 113.1 Iowa Indian average 111.7 e Ameristar Council Bluffs, IA 111.4 Upstate Wisconsin avg. 110.0 e Mt. Pleasant, MI 108.1 e IOC Marquette, IA 107.0 Metropolis, IL/KY 107.6 Harrahs Council Bluffs, IA 106.7 Albuquerque, NM avg. 107.4 Dubuque Greyh Park, IA 106.7 Emmetsburg, IA 106.6 Harrahs Joliet, IL 106.4 Other New Mexico avg. 105.7 Atlantic City, NJ 104.3 Riverside, IA 104.3 IOC Boonville, MO 103.4 Harrahs NKCMO 102.7 Wisconsin Dells 101.6 e Mohegan Sun, CT 100.0 Prairie Meadows, IA 99.9 IOC Waterloo, IA 99.6 Ameristar KCMO 98.0 Michigan City, IN 97.9 Dubuque Riverboat, IA 97.3 Harrahs W St Louis 97.0 Argosy Riverside, MO 96.6 Aurora (Chicago), IL 96.4 Foxwoods, CT 95.6 Argosy Sioux City, IA 96.1 Elgin (Chicago) IL 96.0 Joliet Empress, IL 95.3 Niagara (NY) casino 94.6 IOC Bettendorf, IA 94.0 98 Southern Delaware 93.7 Catfish Bend Burlington, IA 93.7 East St Louis, IL 93.7

99 How Do They Do?

Exhibit 12: Recent Projections Compared to Actual Results (Annual Slot Win / $million) Projection / Source Actual / Source Facility / Market: Zia Park / New Mexico $53.7 $68.9 (1) (2) Emmetsburg / Iowa $23.4 $26.4 (3) (4) Worth County / Iowa $34.2 $67.5 (3) (4) Riverside / Iowa $82.0 $85.8 (3) (4) IOC Waterloo / Iowa $96.8 $76.9 (3) (4) $30.2 Tioga Downs NY $42.2 (5) (6) $49.9 100